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NEW QUESTION: 1
Green Grocers is deciding among two mutually exclusive projects. The two projects have the following cash flows:
Project A Project B
Time Cash Flows Cash Flows
0-$50,000-$30,000
110,000 6,000
215,000 12,000
340,000 18,000
420,000 12,000
The company's cost of capital is 10 percent (WACC = 10%). What is the net present value (NPV) of the project with the highest internal rate of return (IRR)?
A. $8,360
B. $11,450
C. $7,090
D. $12,510
E. $15,200
Answer: E
Explanation:
Explanation/Reference:
Explanation:
NPV(A) = $15,200; IRR(A) = 21.3811%.
NPV(B) = $7,092; IRR(B) = 19.2783%.
Project A has the highest IRR, so the answer is $15,200.
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Explanation:
NEW QUESTION: 3
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A. incident documentation
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C. ongoing or recurring problem records
D. user satisfaction survey results
Answer: A
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